The future of lease accounting
The IASB has issued new proposals on lease accounting to mitigate the risk of 'off balance sheet' transactions. Steve Collings offers a guide to the proposed standards.
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Leased Offices
Hi
The new standard therefore will require all companies that lease offices to record a value for the property and a corresponding liability. Sounds like a lot of work, can't really see the benefit. Also, the UK has fairly complex and very long leases including rent reviews, which are subjective. I can see a lot of room for manipilation here and think the standard should maintain the 'minimum lease payments' principle and not this grey area view of the future.
I believe the UK generally has the longest leases so we may be overlooked when the final statement is cleared.
Any comments?